"Companies don’t compete against other companies. Networks compete against networks." - Competing in a Flat World
I'm often asked, "what is a network orchestrator?". It is not a concept that I created from thin air. As the network orchestrator of a global business solutions firm, one of my primary goals is to help our clients understand that network orchestration goes beyond connecting people at a business function.
One of the best explanations of a network orchestration is presented by Dr. Victor K. Fung, Dr. William K. Fung and Yoram (Jerry) Wind in their book, Competing in a Flat World. In the book, they examine the role of the network orchestrator related to focus, management and value creation. The network orchestrator focuses on the following in comparison to traditional methods:
1. The complete network in the firm vs. the firm. 2. Empowerment of the components of the network vs. rigid controls. 3. Creating value through integration vs. the command and control method.
At S4X, we do not own manufacturing plants. We do not own distribution centers. We are not investment bankers. We are not a law firm. Although we have a location in Indiana, we are not an Indiana Life Science company.
We create solutions for our clients utilizing a global virtual business network. We orchestrate the formation or a specific network for a given client situation. The result is a flexible solution which can be short-term or long-term. All the components of the solution work to create a true client centric solution because we focus on the client situation versus the individual needs of the components.
Think of S4X as the guest conductor for an all-star jazz band at an international jazz festival. We work to bring the various talented musicians to create a beautiful melody for the audience.
Managing the relationships during business formation is just important as managing the process.
We are currently working on a project involving multiple co-founders. All of the partners bring specific expertise to the project. What I find most interesting is the dynamics of the relationships between the co-founders and the between the company and external businesses.
For example, the company is working with business investors in Indianapolis and outside of the U.S. The Indianapolis business relationship and the non-U.S. business relationships are similar regarding the business discussions. The difference is the cultural aspects of the interactions. The management of the cultural aspects requires a little more patience than the business process.
On an internal level, the co-founders each have different viewpoints of the same business issue. Some are very detail-oriented while others are focused on the macro-level. We view this as a good situation for the company. That being said, the conversation still must be managed properly in order to accomplish the micro and macro goals.
How do you mange the relationships in your organization?
This morning, I'm heading out to run the 500 Festival Mini-Marathon. After weeks of training, it all boils down to left, right, left right.
I'm thinking that training and running a race is no different than preparing for funding your company. Business funding in Indianapolis or any other city involves the same discipline and persistence.
There will be positive days and negative days along the way especially if you are in a project involving business formation. As a business consulting firm, we see the training from an outsiders perspective.
Our advice: Stick with the training. When you cross the finish line, you will appreciate all the work along the journey.
When you read the title, you probably thought I was going to mention China, India, etc. Outsourcing is a broad term. For example, if your company uses an outside printing firm to complete your marketing materials, then you are outsourcing.
We are currently working on a project for a medical device start-up in Central Indiana. The scope of the project involves formation of the supply chain for the product to get to market.
During our initial conversation with the client, we discussed the potential for outsourcing the manufacturing to places outside of Indiana. I know that many of you are not happy with outsourcing in its various forms. In my opinion, I think that outsourcing can be the key to the growth of a business. The focus of the business should be on its core expertise. All the rest, you need to outsource.
Fortunately, we are working with our Indianapolis business relationships to keep the initial launch local. As a global business consulting firm, we could have worked with our partners outside of Indiana. We decided to outsource locally to control the initial process.
Is your company focusing 100% on its core business?
A non-scientific review of Indianapolis business trends reveals that technology companies are growing despite the economy. Now, I'm not selecting the technology industry to suggest that everyone should switch to that industry.
As a business consulting firm, we use technology but are far from a technology company. One of our partners, Dave Castor at Alerding Castor, keeps our team informed about technology.
I just think that other industries can learn from the technology industry. Whether your firm is a manufacturer or a business services organization, the lessons from the technology company can help you.
I could use examples from our company or our clients but I thought I would a share a video clip which prompted my thoughts on this subject. Although David Lawee, VP Corporate Development at Google is speaking about business formation issues related to technology, he presented two themes that resonated with me and probably will with you as well.
#1 - Passion, Partnerships and Speed #2 - Maximize time and people resources
We all use technology in our organizations for-profit and NGO alike. What can you or have you learned from those organizations that create the technology you use?
The time for complaining about the economy is over. Whether you are a start-up dealing with business formation issues or a existing company looking for ways to grow your business, it's time to walk through the door.
Business owners need to take a step back from the noise and review the landscape. Broadly speaking, business are failing and people are losing jobs. Upon further review, some businesses are failing due to bad management or lack of investing in their infrastructure during the good times. If your organization is looking to survive or grow, you may want to explore strategies outside of working with banks or grants for funding sources to assist with growth.
For example, one of our clients, a start-up, is working on closing their first round of funding. They will use the funding to begin production of their product. In concert with the funding round, they have secured LOIs (Letters of Intent) and other agreements which will generate revenue in their first year. As a potential solution, we have been approached by and are in talks with several marketing firms which can make the investment. The marketing firm would be the strategic partner and investor. The revenues of both companies are projected to benefit from this partnership.
Although we are a business consulting firm based in Indianapolis, we are observing the success of alternative business models from Seattle to South Africa.
Have you been successful with strategic partners investing in your business?
Much has been made about smart grids, energy independence, clean energy, etc. Whether you like it or not, I think we will have a clean energy infrastructure in place in the United States. Even today, the National Clean Energy Project forum is being held in Washington, DC. This forum is a follow-up to the National Clean Energy Summit.
From a corporate development standpoint, this will present an opportunity for those companies willing to get connected to the grid. By "grid", I'm talking about the technologies, organizations and funding sources that will help to change the energy infrastructure paradigm.
We are currently working on business development opportunities for a client in the energy management sector. Their technology connects the suppliers, consumers and the energy markets. This is one example a business opportunity.
Regarding funding, several top VC firms are looking to invest in clean energy including Kleiner Perkins (KPCB GreenTech Team). Multiple funding sources may add in business formation efforts.
As a business consulting firm and network orchestration firm, we are fortunate to be on the front line of the clean energy movement. Yes, clean energy is good for the environment but it can also be good for the growth of your business. I think the rhetoric is about to take a back seat to action by mutliple sectors. Will your company be connected to the grid..the action?
"We don't have the time to focus on this product." In the last week, I have heard this statement or a similar comment repeated several times from our new clients. I say "new" clients because their issue is one of our core competencies.
Not having the time to focus on the product or service should not be an obstacle. In the current economic climate, I think potentially profitable business models should be explored. This is true for business formation or licensing out of a patented product.
If you or your firm does not have the time to focus on moving a product forward, you might want to think about partnering opportunities. In our most recent experiences, our clients are moving forward by partnering on licensing agreements a distribution partnership and a an equity partnership.
Have you considered partnerships to increase your business opportuites?
I've been reading a few new books lately. While reviewing my notes from Thirteen Days by Robert F. Kennedy, I was reminded of the lessons that can and should be learned from alternate sources.
In the book, a quote from Basil Liddell Hart is mentioned with regard to proper negotiations.
"Keep strong, if possible. In any case, keep cool. Have unlimited patience. Never corner an opponent and always assist him to save face. Put yourself in his shoes--so as to see things through his eyes. Avoid self-righteousness like the devil--nothing is so self-blinding."
Although this quote refers to military-related negotiations, the lessons are transferable to other industry settings. For example, one of our current projects for a client includes business formation activities and negotiating licensing agreements for their patented product. In order to complete these agreements, we must follow some of the lessons from Mr. Hart's quote.
In another situation, we have been retained to consult on an equity raise for an Indiana life science company. During the raise, we have to always consider the situation through the eyes of our investors.
As a global knowledge management firm, we also encounter the complexities of international negotiations which include the need to understand the cultural differences. This is especially true while working in emerging markets.
What lessons have you learned from your negotiations?
In our role as a business consulting and knowledge management firm, we assist our clients in several areas including business formation. I'm excited to tell you that we have been working on the creating a new business of our own.
We are finalizing the formation of a specialized division focused on emerging markets in South Africa, Zimbabwe and Southern Africa. We expect to finalize by the end of the year. Due to this expansion, we are welcoming a new member to the S4X family. Brighton Dube will be our Senior Managing Director for Southern Africa Strategic Initiatives.
I'll keep you posted on what the equation for the division looks like. Is Africa in your equation?
“Logic will get you from A to B. Imagination will take you everywhere.” - Albert Einstein
On the recommendation of good friend, I purchased and started reading Einstein, His Life and Universe by Walter Isaacson. After starting the book, I can't help but realize the lessons from Mr. Einstein that can be transferred into business.
From the beginning, Einstein was a curious person with a continual thirst for knowledge. I think we tend to forget in business that there is always an opportunity to gain knowledge. Then, we can use this knowledge to impact our business and clients. Business formation funding is an area where a company could leverage this type of thirst. If you think traditionally (especially in the current environment), the only solution is a bank. Through this thirst for knowledge, you would learn there are many ways to structure funding including private equity. My partner Dave Castor explains the private equity in detail in his blog.
From emerging markets to established markets, this thirst for knowledge can lead to many opportunities. As a business consulting firm, we work to help our clients understand the value of this thirst to their firm's culture. This holds true in a slow economy or fast-moving economy.
What new opportunities have happened due to your thirst for knowledge?
Much as been said about the economy and its issues. The major news outlets provide the high-level interviews and articles. I read those articles but rely on something more sensible - my peers, colleagues and close friends. How do we communicate? Online social networking sites and text messages.
I prefer Twitter and Facebook. For instance, I recently received an article about Citigroup divesting one of its divisions in India. The acquirer was Tata. The twist of the deal was a 9.5-year outsourcing contract for Tata from Citigroup. Definitely, a great win for Tata.
Via our online social networking, we have advised our clients and have gained several business formation projects in the last two weeks.
Have you learned to leverage the available technology at your fingertips?
During a recent lunch meeting, I met with a couple of partners in private banking. Our conversation centered on helping their clients beyond the private banking services. I mentioned executive office suites. To my surprise they did not know about the concept and business model. I though I would share a little of the information I shared with my partners.
Occupancy costs are an important factor when determining the location of your business. Executive office suites offer a solid alternative to leasing space in a typical office building. In this model, a company leases on a short-term basis (typically 6-12 months) an office space which includes shared administrative services, conference and break rooms and additional services depending on the situation. An example of a executive office suite company is Regus.
We recommend executive office suites to our virtual business, emerging markets and workingarket clients. For those in the start-up or business formation phase, the executive office or virtual office is a good way to establish a business presence.
For our part, we are working with the folks at Regus to establish our offices in South Africa and Dubai. I'll let you know how the process works out for us.
Do you really need all the office space you are leasing? You might want to check again.
“I say to you, this morning, that if you have never found something so dear and precious to you that you will die for it, then you aren’t fit to live.
You may be 38 years old, as I happen to be, and one day, some great opportunity stands before you and calls upon you to stand for some great principle, some great issue, some great cause. And you refuse to do it because you are afraid.
You refuse to do it because you want to live longer. You’re afraid that you will lose your job, or you are afraid that you will be criticized or that you will lose your popularity, or you’re afraid that somebody will stab or shoot or bomb your house. So you refuse to take a stand.
Well, you may go on and live until you are ninety, but you are just as dead at 38 as you would be at ninety. "
Although Dr. King was speaking to civil rights, I think there are business lessons that can be learned from his sermon. Many of our clients are in the business formation phase or beginning to move into emerging markets (domestic or global). The ones that thrive have management and empowered employees that make the tough decisions. They take a stand and move on to the next issue.
As the leader of your organization, are you making the stand?
His book and blog help to remind our team to keep it simple. We currently have a couple of clients in the early stages of business formation. I have recommended that they take a look at the book. Although our clients don't have too complex of a model, they have a terrible time describing the model without a glut of PowerPoint slides.
In this fast-paced world of business blogging, online communities and the search for a way to stand out from the crowd, why not try something that has been sitting in your lap and is simple to use.
By the way, we are working on refining our napkin. I will share it with you in a future post. Have you read the book? What's on your napkin?
I just finished speaking with my friend Dave Castor of Alerding Castor LLP. During the past few weeks, he has been moving at a hectic pace to grow his business. This is the life of an entrepreneur who advises entrepreneurs on the legal issues related to business formation and international licensing agreements.
The world of the entrepreneur is constantly changing. Dave has recently added business blogging to his list of weekly action items. Fortunately for Dave, his firm's has several contributors to spread out the responsibility of creating content for the blog.
To stay ahead of the hectic pace, Dave has scheduled time with himself today and tomorrow. Although it sounds counterintuitive to take time away from business development, I think it is a good decision. In my opinion, working at a hectic pace without time for yourself leads to a cluttered mind and workspace. Clutter is not good.
Have you scheduled a regular meeting with yourself? If not, why?
"People hire you for your integrity and your discretion...You can't really do a first-class job for a client unless he's willing to tell you everything. And in order for him to tell you everything, he's got to believe that you'll keep his confidence." - Bob Greenhill
This quote from the June/July issue of Dealmaker by Bob Greenhill the founder of Greenhill & Co. explains in simple terms the key to business formation, business relationships (including business networking) and successful businesses.
In the end without trust, you can't have solid relationship with clients or employees. In order to gain that trust, you must begin with a defined transparency within your organization and with your clients.
I think the ever-changing global market presents an opportunity whether you are a social entrepreneur, working in emerging markets or in the financial districts in Hong Kong or London. Trust and transparency will help guide your success.
We have all heard about the K.I.S.S. method of making decisions. If you haven't, "K.I.S.S.", stands for Keep It Simple Stupid. The question is, how many people actually practice K.I.S.S.? Are you the person with a 1,000 people on your social networking site or the entrepreneur focused on the minutiae working of the strategic implementation of your latest business venture? If you are in this group of people, you may want to consider simplifying.
Bruce Lee said, "True refinement seeks simplicity." In his book The 4-Hour Workweek, Tim Ferriss describes two ways of living your life. The "Deferrers" live life to have more at the end of their life. The "New Rich" live life to have more quality and less clutter throughout their entire life. Both focus on simplification.
Simplicty is not just creating less steps in a process. It includes recognizing that you may be over-thinking a process and thus cluttering it up. As a result, you are wasting time. Simplifying can occur almost anywhere in your buiness including business formation or your interactions within your business social network.
Ideas + Experience = Companies (Yes, money is a part of this equation but not in the context of this post)
Last week, I attended Innovention 2008, the annual Indiana Life Science industry event hosted by the Indiana Health Industry Forum.
Two of the panel discussions during the event had divergent comments with regard to the state of the life science industry in Indiana. One panel suggested multiple technologies with high commercialization potential exist in Indiana but there is a lack of experienced individuals to capitalize on the potential. On the other panel, the comments indicated that the experience can be pulled together via a virtual business model. In the former, the glass is half empty. In the latter, the glass is half full.
I agree with the latter opinion. We are working with our clients and network to license some of the technologies and capitalize on the potential. If you are a budding entrepreneur looking for a business formation opportunity, this model may work for you. If you are an established organization, this model may create services or products for increased business development.
Yes, you read the title correctly. On the recommendation of a colleague, I've just started reading, The Art of the Start by Guy Kawasaki. After I researched Guy, I found his blog, How to Change the World.
In the book, Guy talks about starting and not waiting for perfection. I think this holds true for most situations. For business blogging, I have to remind myself to write without limits then send it. I can refine it later. If you are in the business development role, you will never have the perfect situation to further the relationship or make the sale.
As a solutions-based business consulting firm, we work with our start-up clients to help them understand that starting the business now is better than waiting for the "right time". If they aren't moving forward on their idea, the world will pass them up.
I recommend this book for many reasons but the primary reason that it speaks to starting now. Business formation does not need perfection to happen, it needs action. Are you starting or planning?
"Companies don’t compete against other companies. Networks compete against networks." - Competing in a Flat World
Managing the relationships during business formation is just important as managing the process. 
This morning, I'm heading out to run the 
When you read the title, you probably thought I was going to mention China, India, etc. Outsourcing is a broad term. For example, if your company uses an outside printing firm to complete your marketing materials, then you are outsourcing. 
Much has been made about smart grids, energy independence, clean energy, etc. Whether you like it or not, I think we will have a clean energy infrastructure in place in the United States. Even today, the 
"We don't have the time to focus on this product." In the last week, I have heard this statement or a similar comment repeated several times from our new clients. I say "new" clients because their issue is one of our core competencies.
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